Sun Life agrees to $213.5M settlement for overcharged policyholders
Class action resolving decades-old claims that MetLife charged excess fees on universal life policies sold in late 1980s and 1990s.
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Canadians who held certain MetLife universal life insurance policies decades ago could soon receive compensation after Sun Life Financial agreed to a $213.5-million settlement.
The legal firm Kim Spencer McPhee Barristers announced Tuesday that "an agreement in principle" has been reached, resolving a class action filed in Ontario Superior Court in 2010. An approval hearing is set for September 8, 2026.
The lawsuit alleged that MetLife overcharged policyholders for insurance costs and fees on Universal Plus and Flexiplus policies sold between 1987 and 1998 — charging premiums beyond the maximum limits stated in their policies. Sun Life took over policy administration in 1998 and inherited the disputed obligations.
Eligible claimants fall into two categories:
Universal Plus Class: Canadians who owned or currently own Universal Plus policies between 1987 and 1998, including successor owners. These claimants could receive compensation for the cost of insurance paid beyond the maximum amounts set in their policy.
Flexiplus Class: Canadians who purchased Flexiplus policies through MetLife between 1987 and 1998, whose monthly costs of insurance and/or administration fees increased. They will be paid for a portion of past insurance cost plus the administrative fee increase.
One group was excluded: Optimet class members, who held that policy from 1987 to 1998, will no longer receive compensation under the settlement.
The settlement resolves a decades-long dispute, but claimants must file by a specified deadline to receive their share. More details are expected when the approval hearing concludes in September.